calender_icon.png 25 April, 2026 | 1:06 AM

Palamuru project hit by funding

25-04-2026 12:00:00 AM

metro india news  I hyderabad

In the wake of the High Court’s latest observations on the Kaleshwaram project, irrigation projects across the state have come under renewed scrutiny. While the government has expressed intent to intensify the CBI probe into alleged irregularities in Kaleshwaram, questions are now being raised about the progress of the Palamuru Rangareddy Lift Irrigation Scheme. Critics argue that the same level of commitment seen in Kaleshwaram is missing when it comes to Palamuru.

Despite being one of the state’s most crucial irrigation initiatives, the Palamuru project remains incomplete years after its launch, raising concerns among the public. Ahead of the budget session, officials had proposed an allocation of nearly Rs. 22,000 crore to ensure completion of the project. However, the government has allocated only Rs. 1,800 crore, triggering criticism over what is seen as inadequate funding.

Originally launched in 2015 with an estimated cost of Rs. 35,250 crore, the project’s cost was revised to Rs. 55,086 crore in 2023. Due to rising construction expenses, additional works, and increasing land acquisition costs, the total projected expenditure is now expected to touch nearly Rs. 85,000 crore. So far, about Rs. 32,067 crore has been spent.

While there has been partial progress in constructing main canals, reservoirs, and lift systems, several critical components remain incomplete. These include distributary networks, sub canals, minor canals, and full scale land acquisition. Notably, only about half of the required pumps and motors have been installed in the lift systems.

Officials estimate that at least Rs. 22,000 crore is still required to complete the remaining works. Of this, around Rs. 7,000 crore is expected to be spent on acquiring approximately 33,500 acres of land. With rising market rates and increasing demands from landowners, this cost could escalate further.

Despite acknowledging the need for substantial funding, the limited allocation in the current budget has raised serious concerns about the project’s future. According to estimates, an additional Rs. 14,602 crore will be required beyond current allocations to complete the project.The scheme has been divided into 21 packages, but progress remains uneven across them. Experts warn that unless last mile works such as distributaries and canal networks are completed, the goal of irrigating 12.3 lakh acres will not be achieved.  This raises the risk that the substantial investment made so far may not yield full benefits. With delays likely to inflate costs further, analysts caution that without clear prioritization and adequate funding, the Palamuru project risks becoming another long pending infrastructure effort.